Purchasing an apartment in New York City, United States of America (USA) is more than just a status symbol of owning a property in one of the world’s most popular cities. It’s also a tangible investment decision. The key to deciding whether you should be buying an NYC condo or coop will be dependent on what you plan on doing with the property.
One of the important questions that you need to be able to answer is whether the apartment in New York will be an investment property or used as a primary or secondary residence.
In any of these cases, your Damalion expert can assist you with your purchase and explain to you the factors you need to consider before buying your NYC apartment. Outlined below are the top considerations for an aspiring buyer in New York City.
Where Should You Buy in New York
This is an important question. If you have been to New York City before, you may already have a choice and know exactly what you want, the reality of living there might be relatively different though.
But If you don’t already live in New York City, we highly recommend you visit the city first. Take your time to stroll across the various neighborhoods in the city to see where you can really feel at home. The neighborhood of New York has to feel ideal for you.
The main factors to consider are: How large an apartment are you looking for? Would you like to rent it out in the future? And of course, what is your budget to acquire your apartment in New York ?
Even better, connect with an experienced buyer’s agent for a personal overview of New York. If you’re serious about buying in the city and you don’t live there already, you’ll need the assistance of an experienced real estate agent on the ground, in other words, your Damalion expert can also help out on this front.
How Do I Find The Place in New York ?
Most buyers go on the internet to try and find New York properties for sale on different websites to get an idea of what they wanted, you can try this also, however, if you decide to do this on your own, bear in mind that the method of finding the right place for you can be very frustrating and tedious. This is because the majority of the apartments in New York are marketed by brokers that are members of REBNY (Real Estate Board Of New York), which guarantees that new properties for sale are shared first within the broker community.
But with the proper advice and information, you’ll find that it’s not nearly as difficult as some might have you believe. With your Damalion expert at your side, we’ll simplify the process for your to buy your apartment in New York.
What Are The Purchasing Costs of your New York apartment ?
Fortunately for buyers, using a broker to buy your house is free. However, once you have identified the property you are interested in purchasing, the associated costs in New York may be as the following:
- Paid By The Seller: broker’s fee, state property transfer tax (0.4%), and city property transfer tax (1% of the first 500k, 1.425% thereafter)
- Paid By The Buyer: appraisal and inspection fees, title search and insurance fees, mansion tax (1% for properties over 1 million), mortgage origination fee and points (1%-4%), mortgage recording taxes (1.75%-2.175%), and buyer’s attorney fee
Do You Have The Essential Paperwork Ready?
When purchasing a condo, all you really need is the money. Co-ops are different though. A Co-op board will likely request the following documentation for authorization.
- Letter from employer stating position, salary, and length of employment
- Last two pay receipts
- Last two years’ tax returns
- Last two months’ bank statements
- Names, professions, and ages of any other relatives living in the apartment.
- Details of any pets.
- Two personal and business reference letters
- Verification of other assets, and
- Photo identification
Your broker will help you gather this in advance of your housing search so you won’t lose time when your preferred apartment comes around.
How Long Does It Take To Complete The Purchase?
It’s normal for people who have never bought in NYC to considerably underestimate the time it’s going to take to purchase a property there but by being both realistic and laser-focused, you can speed things along. If you know what’s out there, what your requirements are, and have a solid sense of your budget, you might beat the national average of 10 weeks and see the ideal property at the right price point early in your search process.
But don’t fully count on this time frame as there are other factors at play, for instance, the neighborhood, your real estate agent, your wishlist and flexibility, making an offer & acceptance, preparing the contract & signing, and the contract to closing.
What Is The Difference Between A Co-Op And A Condo?
When you purchase a co-op, you’re not buying real estate in the formal sense. You’re purchasing shares of a corporation, and that “co-op” possesses the building. The larger your unit, the more shares in the co-op you own.
A condo, on the other hand, is a personal residence in which you own the unit itself, making it actual real estate. Not only do condo residents possess their individual apartments, but they also jointly own common areas that make up the rest of the building.
You have a little bit more control and flexibility as an owner of a condo than when you purchase a co-op.
Price points, authorization processes, different down payments, homeowner regulations, and financial requirements make up the rest of the main differences. However, none of these distinctions mean that one is naturally better than the other. That’s for you, as the buyer, to decide, based on your housing demands.
If you’re still stunned about the whole co-op/condo situation, you’re not alone, your Damalion expert is always here to help.
If I Chose To Buy, What Are The Typical Monthly Costs?
In a co-op, shareholders pay a monthly maintenance fee. Part of these fees goes toward the expense of operating the building and the other part is the amount of property taxes assigned to each shareholder based on the number of shares allocated to their apartment.
Additionally, co-op boards can require shareholders to contribute extra cash occasionally to boost the reserve fund or pay for a specific project. Generally, shareholders can spread their payments out over a period of time such as 3 to 18 months.
In a condo, the monthly fees are referred to as common charges. Note: Property taxes are not included in the monthly common charge, individual owners will be billed directly by the government. Similarly to co-op boards, condo boards also levy assessments when essential.
Monthly charges in both co-ops and condos incline to increase with the expansiveness of amenities and personnel. However, bigger buildings have economies of scale when it comes to staffing and operation which is often reflected in lower common charges.
Based on the guidelines above, you should have an idea if you are a viable buyer for New York City real estate. So if you’re ready to purchase your NYC property now or need more details, let’s go ahead together and contact your Damalion expert now, and we’ll be happy to guide you through.
Buying an apartment in New York City: condo vs co-op, eligibility for non-residents, financing options, board approvals, closing costs, taxes, and a clean path to closing.
For international buyers, entrepreneurs, family offices, and long-term investors considering NYC
Damalion facilitates introductions to experienced brokers and attorneys, coordinates KYC, helps structure the purchase vehicle, and keeps timelines and documents aligned until keys are handed over.
Last updated: 13 September 2025Why consider New York for an apartment purchase?
NYC offers deep liquidity, transparent processes, and a broad choice of assets. If you want a place to live, a pied-à-terre, or a rental investment, you can match location, carrying costs, and building rules to your objectives without compromising on governance.
What is the practical difference between condos and co-ops?
This choice drives approvals, financing, and how you can use the apartment. Understanding the rules early avoids surprises at board interview or underwriting.
- Condominium. Real property with a deed. Generally more flexible for non-residents and rentals. Board approval is lighter, with a waiver or right of first refusal rather than a discretionary interview in most cases.
- Co-operative. You buy shares plus a proprietary lease. Boards have broad discretion and may limit subletting, pieds-à-terre, or corporate ownership. Often lower purchase price but stricter lifestyle rules.
- Condo-op / condop. Hybrid structures exist but are less common; terms vary by building documents.
Can non-residents obtain financing and what will lenders review?
Financing is possible for foreign buyers, typically with higher down payments and specific documentation. A strong, consistent file shortens underwriting.
- Typical down payment expectations for non-residents can be higher than for U.S. residents; some lenders prefer 30–50% equity.
- For condos, a mortgage recording tax applies on the loan amount (co-ops do not pay this tax because they are not real property).
- Lenders assess credit history or international banking references, income/asset proofs, building financials, and reserve requirements.
- Co-ops often require post-closing liquidity multiples; confirm building-specific rules before signing.
What buyer costs should you plan for at closing and each year?
Closing costs differ for re-sale versus new development and for condos versus co-ops. You also need a clear view of ongoing carrying costs.
- Mansion tax (State). Applies to purchases at or above statutory thresholds and increases in tiers with the price. Budget a meaningful line item on larger transactions.
- Transfer taxes. Typically paid by the seller on re-sales; on some new developments sponsors shift state/city transfer taxes and legal fees to the buyer—verify contract language.
- Mortgage recording tax. Applies to condo mortgages with rates that vary by loan size; your lender may absorb a small portion.
- Title insurance / lien search. Condos use title insurance; co-ops use a lien/UDC search since shares are transferred.
- Common charges and taxes. Condos pay monthly common charges plus real estate taxes. Co-ops pay monthly maintenance that includes the building’s underlying tax share.
- Attorney, inspection, appraisal, and move-in fees. Building-specific application and move-in deposits may apply.
How do you buy an NYC apartment step by step?
These steps keep the offer, diligence, financing, and board process in sync so your closing date holds.
- Define the brief. Set budget ranges, neighborhoods, use (primary, pied-à-terre, investment), and rental needs.
- Assemble the team. Engage a buyer’s agent and a New York real-estate attorney; align on timelines and communication.
- Select assets and underwrite. Review building financials, house rules, sublet policy, and reserves; order inspection where appropriate.
- Offer and contract. Negotiate price and terms, sign the contract with deposit in escrow; confirm contingencies (financing, appraisal).
- Loan and appraisal (if financed). Complete underwriting and building approval; lock rate and clear conditions.
- Board or waiver. For condos, obtain waiver/right of first refusal; for co-ops, submit a detailed package and attend board interview.
- Title / lien search and closing statement. Clear title for condos or clean lien search for co-ops; finalize prorations and taxes.
- Closing and possession. Execute closing documents, fund balances, receive keys; schedule move-in per building rules.
How does Damalion support international buyers?
We streamline the process around you: introductions to reputable brokers and attorneys, bank pre-screens for non-resident lending, purchase-vehicle coordination (personal, LLC, or trust), and a tidy closing calendar that everyone follows.
